Outside Publication

Application of Section 199A to Domestic Taxpayers Engaged in US and Foreign Business Operations, Corporate Taxation

September 05, 2018

Morgan Lewis partner Casey August authored an article for Corporate Taxation detailing the Section 199A “pass-through” deduction for businesses in the Tax Cuts and Jobs Act. The pass-through deduction benefits individual sole proprietors and owners of tax flow-through entities. This article reviews the Section 199A deduction rules set forth in the statute and considers how they interact with the current rules for domestic businesses that also conduct international operations.